A local restaurant offers an "all you can eat" Sunday brunch for $12. Jenica eats two servings but leaves half of a third helping uneaten. Why?
a. Her marginal value of brunch has fallen below $12.
b. Her marginal value of additional food has fallen below $4 ($12 divided by 3 servings).
c. Her marginal value of an additional bite of food has fallen to zero.
d. The total value she places on brunch today exactly equals $12.
c. Her marginal value of an additional bite of food has fallen to zero.
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The income effect of an increase in the interest rate will result in an increase in consumption when a. young and an increase in savings when young. b. old and an increase in savings when young
c. young and a decrease in savings when young. d. old and an increase in savings when old.
The recurrent ups and downs in the level of economic activity extending over several years are referred to as
A. business startups. B. economic phases. C. business cycles. D. noncyclical fluctuations.
How do the price, output, consumer surplus, economic profit, and total surplus for a single-price monopoly compare to that of a competitive industry?
What will be an ideal response?
Many younger people eat peanut butter AND jelly, whereas many older people eat peanut butter OR jelly. This suggests that the cross elasticity of demand between peanut butter and jelly is
A) negative for youngsters and positive for oldsters. B) positive for youngsters and negative for oldsters. C) negative for youngsters and zero for oldsters. D) positive for youngsters and zero for oldsters.